Strategy Increases Bitcoin Holdings to Record 847,666 BTC
The company purchased 1,665 BTC for $142.7 million while simultaneously repurchasing $151.7 million in preferred stock.
Quick Look
- Strategy has acquired 1,665 BTC for $142.7 million, bringing its total holdings to a record 847,666 BTC.
- The purchase was funded by selling MSTR common stock, which also supported the $151.7 million repurchase of STRC preferred stock.
AI-generated summary
Why It Matters
Strategy has been actively managing its capital by balancing Bitcoin accumulation with the repurchase of its preferred stock series.
Strategy bought 1,665 BTC for $142.7 million between September 21 and September 27.
The purchase takes its Bitcoin holdings to a record 847,666 BTC.
The company also repurchased $151.7 million of its STRC preferred stock.
Strategy has added another 1,665 BTC to its holdings, pushing the company's stash to a new record as it continues to balance Bitcoin purchases with buybacks of its preferred stock.
The company paid $142.7 million for the Bitcoin at an average price of $85,681 per coin, according to a Monday filing with the Securities and Exchange Commission. Its total holdings now stand at 847,666 BTC, acquired for $63.95 billion at an average price of $75,437 per Bitcoin.
The purchase puts Strategy above its previous record of 847,363 BTC, reported June 22, per BitcoinTreasuries. The company subsequently sold Bitcoin during the summer before resuming purchases in August.
Strategy's latest purchase was funded with proceeds from sales of its MSTR common stock through its at-the-market offering program. The company sold 1.47 million MSTR shares during the week, generating $246.2 million in net proceeds. Of that, $142.7 million went toward Bitcoin purchases and $103.5 million was used to repurchase STRC preferred stock.
Strategy’s STRC buybacks
Alongside the Bitcoin purchase, Strategy repurchased 1.53 million shares of its Variable Rate Series A Perpetual Stretch Preferred Stock, known by its ticker STRC, for $151.7 million.
The company has now spent hundreds of millions of dollars buying back STRC as it seeks to take advantage of the preferred stock trading below its stated amount. Its latest filing says $723.5 million remains available under its digital credit securities repurchase program.
Strategy has previously described STRC repurchases as part of its broader capital-allocation strategy. Last week, the firm proposed daily dividend accrual on its preferred stock, including STRF, STRC, SREK and STRD, in a bid to dampen volatility.
The latest purchases come after Strategy spent much of the summer selling Bitcoin and building up its dollar reserves. The company sold 6,948 BTC between May and August, according to previous disclosures, before beginning to rebuild its holdings.
$6.02 billion in dollar assets
Strategy also reported $6.02 billion in USD assets as of September 27.
The figure consists of a $5.02 billion USD Reserve and $1 billion of USD Cash, according to the 8-K. Its USD Reserve is a dedicated dollar fund maintained to dividends on its preferred stock and interest on its debt, while USD Cash is a separate pot established last month, which can be used for Bitcoin purchases, increasing the reserve and other capital-management purposes.
During the latest week, Strategy used $48.1 million of USD Cash to fund STRC repurchases and $22.1 million from its USD Reserve to pay preferred-stock dividends.
That cash position gives Strategy another source of capital as it manages its Bitcoin holdings, preferred-stock obligations and common-stock issuance.
The company has previously said its capital framework allows it to sell up to $1.25 billion worth of Bitcoin to fund its USD Reserve, preferred-stock dividends and interest expenses, as well as repurchases of MSTR or its preferred securities.
Open Questions
- Will the company continue the current pace of MSTR share sales?
- How will future BTC price volatility affect the USD Reserve?
